HC Deb 15 July 1926 vol 198 cc632-3W
Captain MACMILLAN

asked the Chancellor of the Exchequer what action has been taken in Empire countries, including Great Britain, to carry out the recommendations of the Imperial Economic Conference in 1923 on shipping taxation?

Mr. AMERY

I have been asked to answer this question. The Resolutions of the Imperial Economic Conference embodied two alternative recommendations on the subject of shipping taxation: (a) that, where possible, reciprocal arrangements should be made on the lines of Section 18 of the Finance Act. 1923, between this country and oversea parts of the Empire for the relief from Income Tax of non-resident shipowners, and (b) that, where this was not possible, reciprocal arrangements should be made whereby, subject to mutual agreement, tax should be assessed on a basis laid down in the Report of the Conference.

As regards (a) the necessary statutory provision was made in this country by Section 31 of the Finance Act, 1924. No arrangement has as yet been made with any Dominion under this provision, but the profits of non-resident shipowners are' not chargeable to Income Tax in Canada and Newfoundland, nor, in view of the recent agreement between this country and the Irish Free State for the exemption of non-residents generally, are they so chargeable in the Irish Free State.

As regards (b) the recommendations of the Conference have been accepted by New Zealand and by the Government of India, and the necessary administrative arrangements to give effect to them are in force as between Great Britain and those countries. A circular despatch was sent to various Colonial Governments enclosing the draft of a clause for insertion in their local Income Tax Ordinances to enable similar arrangements to be made, and this clause has been duly enacted in the following Colonies:

Barbados.

Leeward Islands (Antigua, Dominica and St. Kitts-Nevis).

Seychelles.

Trinidad and Tobago, and the Windward Islands (Grenada, St. Lucia and St. Vincent).

The hon. Member is, no doubt, aware that in several Colonies and Protectorates the question does not arise owing to there being no Income Tax legislation in force.